First of all, you need to create a personal budget. This will show all the money you have coming in and all the expenses you have going out.
There may be ways you could increase your income, for example:
- claiming benefits that you are entitled to
- paying the correct tax on your earnings
You may also find you can reduce some of your expenses, for example:
- moving to a cheaper fuel supplier or phone provider
- finding lower price car and home insurance
If you’re not sure how you are spending your money, you should keep a spending diary for about a month. This will give you a clearer picture of where you spend your money. Also, if you’re part of a couple and have joint expenses, you should both complete the budget sheet.
You can use online budgeting tools to create a personal budget. See:
- Citizens Advice – work out your budget
- National Debtline – your budget
- Money Manager Tool for Universal Credit customers – to help people budget on Universal Credit
Once you’ve completed your budget, you’ll know how much money you have left once your essential expenses have been paid.
